KOAT Action 7 News anchor Shelly Ribando breaks down the right times to use a credit card.

KOAT Action 7 News anchor Shelly Ribando breaks down the right times to use a credit card.

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Updated: 5:53 PM MST Feb 20, 2015

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WEBVTT TO THEIR PARENTS. SINCE MOST PEOPLE SIMPLY DON'T CARRY CASH ANYMORE, IT ALL COMES DOWN TO - DEBIT OR CREDIT. TONIGHT ACTION 7 NEWS ANCHOR SHELLY RIBANDO GIVES US US A QUICK LESSON ON PROTECTING YOUR WALLET. AND WHEN YOU SHOULD NEVER USE A DEBIT CARD. THE NEXT TIME YOU'RE AT THE STORE AND YOU'RE ASKED, CREDIT OR DEBIT.... THERE'S ONLY ONE ANSWER - CREDIT. THAT'S ACCORDING TO EXPERTS AT POPULAR FINANCE WEBISTE, DAILY FINANCE. THE REASONS: SECURITY. PEACE OF MIND. REWARDS -- AND....USING THE CREDIT LIKE A DEBIT CARD. HERE'S HOW: PAY CREDIT CARD BALANCES IN FULL EVERY MONTH AND NEVER SPEND MORE THAN YOU CAN AFFORD. THAT WAY, THERE'S NO NEED TO WORRY ABOUT THE INTEREST RATE. FOR THOSE WHO DO ALTERNATE BETWEEN CREDIT AND DEBIT CARDS, HERE ARE FIVE SITUATIONS WHEN YOU SHOULD STILL ALWAYS CHOOSE CREDIT. 1. ONLINE PURCHASES DEALING WITH FRAUDULENT DEBIT CARD PURCHASES ISN'T AS SIMPLE AS DEALING WITH ONLINE CREDIT CARD FRAUD. BUT WITH A CREDIT CARD, A NEW CARD CAN BE MAILED SOMETIMES OVERNIGHT. AND A CREDIT CARD COMPANY WILL USUALLY ACT ON YOUR BEHALF. SITUATION # 2 - USE A CREDIT CARD FOR GAS AND HOTEL PURCHASES. GAS STATIONS CAN PLACE A HOLD OF $50 TO $100 ON A DEBIT CARD. HOTELS, YOU CAN SEE A HOLD AROUND $100 TO $200, IN ADDITION TO THE HOTEL COST. THOSE HOLDS CAN LAST A FEW HOURS, TO OVERNIGHT ON A DEBIT CARD - WHICH CAN BE A PROBLEM FOR CUSTOMERS WITH VERY LOW BALANCES, ESPECIALLY IF IT LEADS TO AN OVERDRAFT. SITUATION 3 - DON'T USE YOUR DEBIT CARD FOR LARGE PURCHASES. UNLIKE WITH A CREDIT CARD, CONSUMERS ARE TYPICALLY UNABLE TO STOP PAYMENT ON A DEFECTIVE ITEM PURCHASED WITH A DEBIT CARD. AND THE 4TH SITUATION YOU SHOULD NOT USE A DEBIT CARD - IN DUBIOUS PLACES SINCE DEALING WITH FRAUDULENT CREDIT CARD PURCHASES IS SIGNIFICANTLY EASIER THAN DEALING WITH DEBIT CARD FRAUD, YOU SHOULD NEVER USE A DEBIT CARD AT ANY ESTABLISHMENT THAT APPEARS QUESTIONABLE. IF YOU WANT TO FIND OTHER WAYS TO MONITOR YOUR CREDIT--WE'VE GOT FIVE TIPS TO IMPROVE YOUR SCORE ON KOAT-DOT-COM. JUST LOOK IN THE FEATURES SECTION. IT'S HOLLYWOOD'S

When to use credit instead of debit

KOAT Action 7 News anchor Shelly Ribando breaks down the right times to use a credit card.